Nepal has formulated six strategies to address the challenges that it is set to face once it graduates from the Least Developed Country (LDC) status. Prime Minister KP Sharma Oli informed the National Assembly on Wednesday that all six strategies are in place.
These plans are to be implemented by various committees established to carry out these strategies: a high-level steering committee under the PM, an implementation and coordination committee under the Vice-chairperson of the National Planning Commission, a federal evaluation committee under Chief Secretary, and provincial-level implementation committees under Chief Ministers.
The government plans to reenact and lower a few laws while legislating new ones in a way that will move in harmony and sustainably, Oli said, responding to queries during a discussion in the National Assembly on the post-graduation scenario.
According to Oli, Nepal is working to make its external relations robust by effective diplomatic efforts internationally, strengthening the enforcement of international treaties and gaining international solidarity through bilateral and multilateral relations. He also stated that opportunities are opening for more investment and concessionary credit.
The state government is also geared toward overhauling legislation on public procurement and construction policy, institutional and personal capacity building, and infrastructure and connectivity upgrade to transform Nepal from a landlocked country into a land-linked country. In addition, there are attempts to stimulate value chains through multinational companies.
Oli said that measures have been devised to mitigate the impacts of graduation in the private sector, labor and employment, and trade. All sectors, he added, will be facilitated by the government in making the transition sustainable.
Oli expressed confidence that Nepal’s graduation would raise the nation’s global standing and herald efforts toward self-reliance. “It’s a point of happiness. This shows that Nepal is becoming self-sufficient. Our country rating index will also be better, and the investment climate will be strengthened further,” he added.
He also went on to say that LDC graduation would enhance Nepal’s economic diplomacy by hosting events such as Sagarmatha Sambaad and investment forums. Since bilateral trade and cooperation of Nepal are dominant, the direct impact of the graduation in this sector will be minimal in the short term, he said.
Nepal has been on the UN list of Least Developed Countries since 18 Nov 1971. It has taken 55 years, and the country is graduating in the year 2026. Nepal, the LDC group chair of 45 countries at present, has been undertaking a process for graduation from the LDC status since 2010 through regular plans and programs.
Oli explained that Nepal had progressed in the Economic and Environmental Vulnerability Index and Human Assets Index, as assessed by the UN in 2015, 2018, and 2021.
He noted that some benefits Nepal derives as an LDC—such as preferential trade from the World Trade Organization, UN special facilities and concessions from bilateral partners such as the EU and World Bank—could be restricted after graduation. The same could be true in the sectors of health and education also.
Referring to challenges such as global warming and natural disasters, Oli said the government has already embarked on diplomacy through the Ministry of Foreign Affairs and initiated a transition plan smoothly through the National Planning Commission. Emphasizing the commitment of the government, he said: “Some claim the government is doing nothing, but this is not true. We are already making significant strides.”
